AGENTS AND AGENCY
AN agent is a person who acts for or on behalf of another
(the principal) in such a manner that the principal is legally"
liable for all acts carried out under such agency.
There are several ways in which an agency may be
created, and the rules apply not only to shipping but to all
other commercial or professional agents.
The dearest manner in which an agency may be created
is by express agreement, .whereby the agent receives from
his principal definite instructions to do certain things on his
behalf. He win receive either limited bounds in which to
operate or a general agency by which he may act in all
manners in the furtherance of his principal's business.
Implied agency is created when a person receives implied
authority to act for another; an example may be given in
the case of the master of a vessel, who is the agent of the
owners by appointment in relation to the conduct of the
ship and ship's business. He is, however, only bailee for
the cargo which is carried on board the ship. Under his
powers as bailee, he has not authority to do other than care
for and keep the goods in his charge until delivery. But
when the ship meets with danger or in a time of peril, the
master has implied authority to act as agent for the cargo
owner, and may dispose of, or treat with the cargo, which in
his ordinary course of business he would have no authority
to do. It may be noted that the master has limited powers
only in ordinary times, but in times of peril his authority is
Agency by ratification occurs when the agent commits an *
act for which he has no authority whatsoever, but acquaints
Ss^ principal after the occurrence jffith, his act, and the prin,-
cigd^agrees to and accepts the agent's action. A contract
in excess of authority can be ratified only when the agent
contracted as agent though in excess of authority.